Analyzing the Benefits of Clean Core for Users

In the second unit, we articulated a precise definition of clean core. We saw that a clean core means a system that is as close to standard as possible. The system runs cloud-compliant extensions and integrations that are created using standardized guidelines and best practices from SAP. Also we saw that SAP S/4HANA Cloud is effective in tackling the challenges that a modern enterprise faces when it is maintained with a clean core across all relevant dimensions.

In this unit, we look at the benefits of a clean core ERP for various stakeholders. In this first lesson, we start with the most important one: users. In the following two units, we look at the IT staff and the company as a whole respectively.

A clean core enables users to make better decisions faster with increased data quality and availability.

The true value of enterprise software is created by the people who use it every day to carry out the tasks that enterprises depend on to fulfill their purpose and mission. Those tasks are oriented towards all the stakeholders of an enterprise - employees, customers, investors, and society in general. Let's use a real example to explore the benefits of clean core for users. Enter The Gritty Pixel a production company that is facing several challenges that are hindering its growth and competitive edge. Gritty Pixels is in the business of creating inspiring graphics and videos. Their products are world-class, sharp, and visually appealing. However, behind the scenes, they are suffering due to their convoluted, slow, and error-prone legacy systems. The systems are loaded with redundant features from past customizations not to mention large amounts of duplicated data.

The challenges created by these legacy systems are centered on the following:

• Data silos and inefficient communication: Different departments within the company operated in silos, resulting in a lack of coordination and poor communication. This led to delays, errors, and duplicated efforts.
• Manual and time-consuming processes: The company relied heavily on manual processes, such as data entry, inventory management, and order fulfillment. These processes were prone to errors, consumed valuable time, and hindered scalability.
• Lack of real-time insights: Without a centralized system, decision-makers lacked access to real-time data and had to rely on outdated reports. This hindered their ability to make informed, data-driven decisions promptly.

Watch the video to explore the challenges from an end user perspective.

Recognizing the need for a comprehensive solution to address these challenges, the production company came across the concept of clean core with SAP ERP. Intrigued by the potential benefits they decided to replace all of their convoluted legacy systems with a greenfield implementation of an SAP S/4HANA Cloud system. Since a new implementation starts with a clean core by default, Jane experienced immediate and clear benefits. Let's explore how these benefits occurred.

By default, an SAP S/4HANA Cloud Public Edition system starts off clean.

One of the most apparent benefits of a clean core is improved system performance and responsiveness. A clean core eliminates unnecessary complexity via clean processes, reduces system bloat via clean data, and ensures efficient resource utilization. Moreover, as SAP S/4HANA Cloud is based on SAP HANA, applications experience increased performance of applications using real time data contained in memory, as opposed to residing on the database. Jane now enjoys these benefits. The sales, production, and inventory processes are now harmonized in SAP S/4HANA Cloud, with no need to interface with other systems. As a result, the former background jobs now run as real time applications with virtually no latency.

As mentioned in Unit 2, one of the dimensions of clean core is clean data. Clean data ensures data integrity and accuracy, which is crucial for informed decision-making. With a well-structured system data wise, Jane now can trust that the data she looks at on her reports is reliable and up-to-date. As a result, the risk of Jane making a decision based on incorrect or outdated information is eliminated, leading to improved overall business outcomes.

Clean operations are another dimension of clean core. An ERP system with a clean core is inherently more stable and reliable. One reason why is that release management is established as a foundation and is integrated in day-to-day operations for the system. This integration results in a system with few inconsistencies, errors, or bugs. Jane has advanced notice of innovations in the applications that she uses everyday and those innovations are pushed out to her in a smooth and easy manner. The security roles in the system are assigned to Jane based on SAP best practices. Jane rarely (if ever) experiences any downtime due to system instability. In summary, Jane experiences increased productivity, decreased frustration, and ultimately, improved business performance.

Under clean core, business processes are clear but also flexible. They can adapt to changing conditions whether those changes originate from regulatory oversight, the market, or any other reason. A clean core thus provides the foundation for a flexible and scalable ERP system. In the greenfield project, Jane worked with managers and the IT department to make sure that the business processes were clear, consistent, and based on SAP best practices.

As The Gritty Pixel grows from year to year, business processes and workflows are tweaked accordingly. As it enters new markets across the globe, different localized variations of business processes are necessary and are implemented accordingly with Jane as an active participant.

A clean core is vital for a successful ERP implementation and offers numerous benefits for users. It improves system performance and responsiveness, enhances data integrity and accuracy, ensures system stability and reliability, simplifies the user experience, and provides flexibility and scalability. By prioritizing a clean core, businesses can help their employees to work more efficiently, make better decisions, and improve overall business success. As we have seen through Jane's experience, a clean core is not just a technical aspect but a critical factor in ensuring user satisfaction and productivity.

SAP S/4HANA Cloud with a clean core allows users to collaborate more meaningfully by using one version of the truth to break down siloed departments.